Use the following information to answer questions 11 and 12. P.C. Jenny Company (PCJ) and MartWall Company (MWC) are in the same risk class. PCJ dividends have remained unchanged at $3.00 per year, and are not expected to change in the future. MWC dividends have had a constant growth rate of 4 percent per year and are expected to maintain this growth rate in the future. The market price of the PCJ stock is $26/share. MWC just paid a dividend of $2.00 per share.

What is the market required rate of return on the PCJ stock?

What should be the market price of MWC shares?